Tata Steel Europe Announces £71m Loss
Tata Steel Europe have posted a loss of £71 million up to March 2016, a huge contrast with the £435 million profit announced in the company’s last results.
Over the same period, the division’s turnover had also gone down 15.3%, reduced to £6.87 billion the previous year.
Hans Fischer, Chief Executive of TSE, said that the continued surging imports of last year have resulted in an undermining of demand in Europe.
Mr Fischer said that it was crucial for national governments and the European Commission to continue strengthening their actions against unfair trading.
Meanwhile, Tata have said that its board are currently in the process of investigating all its potential options for the future of its businesses in the UK and refused to rule out further sales.
The UK branch of the company has already sold the Long Proucts Europe group to Greybull Capital, to be finalised after the transfer of contracts and the approval of the Government.
Tata Steel UK removed 750 of its staff from its Port Talbot business ‘Strip Products UK’, while a further 100 steel mill jobs and 200 support jobs were cut in Hartlepool, Corby and Trostre.
The company have also said in October 2015 that it is to remove 1,200 jobs at the plant in Scunthorpe, however it is hoped that when the Greybull Capital sale is completed that these jobs will be spared.
Over one third of the company’s total sales are made up by differentiated products and high value sales, so the company will now be focussing its output on these areas instead of volume.
Across Europe, production of liquid steel now stands at 3.41 million tonnes, which is also a reduction from its last result of 3.91 million tonnes. Deliveries also dropped to 3.55 million tonnes, a fall from 3.81 million tonnes across the same period.